While the markets have been expecting the hike for months,
emerging market currencies don't look to have prepared
themselves, and many are falling back against the dollar on
Wednesday.

The biggest loser right now against the dollar is the South
African Rand, which along with jitters about the Fed, is still
feeling the impact of South Africa's president Jacob Zuma
sacking two finance ministers in less than a week. The
dollar is up more than 0.8% against the Rand.

The only big exception to this emerging market lethargy against
the dollar is the Russian ruble, which has gained 0.4% against
the greenback today.

The dollar's bull-run against major currencies this year seems to
have come to a standstill on Wednesday.

The run's halt comes as investors wait for Yellen's rate
decision, and more importantly — according to a note sent this
morning by Morgan Stanley FX strategists Hans Redeker, and
Ian Stannard — the Fed's summary of its economic projections
going forward.

The EUR/USD cross is down roughly 0.1%, while GBP/USD is down
slightly more, around 0.17%. The dollar is also largely unmoved
against the Swiss Franc, and the Japanese Yen, as well as both
the Canadian and Australian dollars. All four currencies have
moved less than 0.1% against the greenback today.